What was the license fee expense for Big Apple Bagels in 2024?
Big_Apple_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
vember 2024, 2023 and 2022 were $548,200, $577,900 and $584,900, respectively. Allocations to Operations for November 2024, 2023 and 2022 were $
Source: Item 23 — RECEIPTS (FDD pages 87–319)
What This Means (2025 FDD)
According to Big Apple Bagels's 2025 Franchise Disclosure Document, the license fee expense for the company in 2024 was $603,400. The license agreement between the company and Inc. stipulates that Big Apple Bagels must pay Inc. a license fee for the use of the BAB trademark. This agreement commenced on December 1, 2003, and has a term of 10 years with automatic renewals for five-year periods.
The license fee is structured as a percentage of revenue. Big Apple Bagels pays 28% on the first $3,000,000 of revenue earned each fiscal year and 50% on any revenue exceeding $3,000,000. All revenues are subject to this license fee.
For a prospective franchisee, this indicates that Big Apple Bagels, as a franchise system, has a significant ongoing expense related to the use of its trademark. This cost is factored into the overall financial performance of the company, which ultimately affects the financial health and stability of the franchise system. Franchisees should consider this expense when evaluating the financial viability of investing in a Big Apple Bagels franchise.